Official Interest Rate Change for Employer Loans - July 2025
SARS has updated their Tables of Interest Rates to indicate that the repo rate change announced on 31 July 2025 will take effect for tax purposes, i.e. will increase the official interest rate, from 1 September 2025 only, not 1 August 2025 as initially announced. We’ve updated our system to ensure that the new date is used.
The South African Reserve Bank announced a further reduction of 25 basis points in the repurchase (repo) rate. The repo rate will change from 7.25% to 7%, effective from 1 August 2025.
As the official interest rate is set at 1% above the current repo rate, the interest rate will decrease from 8.25% to 8%, also effective from 1 August 2025. This change impacts the fringe benefits calculated on any Employer Loan item on SimplePay, which is linked to the presiding official interest rate.
Rest assured that SimplePay has already made the necessary changes to take the decrease into account. In line with our ongoing commitment to making your payroll simple and compliant, all relevant Employer Loan items on payslips from 1 August 2025 will automatically incorporate the new interest rate. Payslips dated before this date will remain unaffected by this change.
If you need any assistance setting up our Employer Loan item, you can visit our help page for more information.
Should you have any questions, or require any assistance with your SimplePay account, please feel free to contact us at [email protected].
If you aren’t a SimplePay member yet, but want to experience compliant and simple payroll, take advantage of our free, 30-day trial by signing up here.
Take care,
Team SimplePay